The $36.2 billion House Ways and Means budget proposal represents a 5 percent increase over the current budget and features:

$25.5 million in additional unrestricted local aid...

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House budget highlights

The $36.2 billion House Ways and Means budget proposal represents a 5 percent increase over the current budget and features:

$25.5 million in additional unrestricted local aid for cities and towns

$100 million in additional Chapter 70 education funding

a $6.3 million increase in funding for substance abuse programs

a $7.5 million increase for mental health services.

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BOSTON — Calling for modest increases in local aid and targeted investments in drug treatment and social services, House leaders on Wednesday unveiled a $36.2 billion state budget for fiscal 2015.

The spending plan represents a 5 percent increase over fiscal 2014 and calls for approximately $190 million less in spending than Gov. Deval Patrick proposed in January.

While the economy is showing some signs of improvement and state revenues are up, House Ways and Means Chairman Brian Dempsey said he favors a measured approach.

“It’s so important for us to continue to be cautious,” he said, adding that things are heading in the right direction.

The budget proposal includes $339 million in cuts to what Dempsey terms “maintenance spending.” Those cuts, he said, don’t focus on one particular area and are “sprinkled throughout the budget.”

Reacting to the recent spike in fatal heroin overdoses, Dempsey called for new funding for drug abuse treatment programs and stiffer penalties for drug traffickers.

“I think we are all frustrated with the alarming number of deaths we’re seeing in the commonwealth,” he said.

He also called for improving the Department of Children and Families, strengthening DCF licensing requirements and investing an additional $12.6 million to hire 245 new workers.

The House proposal calls for $25.5 million in additional unrestricted local aid for cities and towns and $100 million in additional Chapter 70 education funding compared to the fiscal 2014 budget.

“It’s a balanced, responsible budget,” said Massachusetts Taxpayers Foundation President Michael Widmer. “It’s a tight budget reflecting a small recovery.”

Noah Berger, director of the Massachusetts Budget Policy Center, said the budget proposal “takes some small steps” forward, but could do more had the House chosen to introduce new revenue streams.

“What this budget doesn't do is present a strong, long-term vision for expanding opportunity and strengthening our economy by providing significant new support for things like workforce training, early education and other investments in our people,” he said.

Some have criticized the budget for reducing funding for youth employment programs.

Erica Mattison, legislative director for the Environmental League of Massachusetts, said the budget comes up short when it comes to funding environmental initiatives and represents a step backward in that regard.

“While the Democratic majority set an unfortunate tone to this year’s budget debate by refusing to consider amendments relative to local aid, education spending and welfare reform, the House Republican Caucus will not be deterred,” Jones said in a statement.

Dempsey said House and Senate leaders previously agreed to a resolution that both chambers would support a $25.5 million increase in unrestricted local aid.

Welfare reforms, he said, were already debated as part of a separate welfare overall bill.

The budget calls for more than $945.7 million in unrestricted local aid and $4.4 billion in Chapter 70 funds for local school districts.

The budget includes increased spending in targeted social services programs, including a $6.3 million increase in funding for substance abuse programs and a $7.5 million increase for mental health services. The budget calls for keeping Taunton State Hospital opened at a reduced 45-bed capacity through fiscal 2015. Lawmakers in recent years have fought the Patrick administration’s plan to relocate Taunton State Hospital beds to a new facility in Worcester.

In addition to increased funding in certain social areas, Dempsey called for increasing the maximum penalty for a heroin trafficking conviction from 20 years to 30 years.

“We are experiencing an epidemic,” Dempsey said, referencing the growing number of heroin overdose deaths in Massachusetts.

The House Ways and Means budget draws $260 million from one-time sources, including $140 million from the state’s rainy day fund.

“The fact that it’s an election year and it’s only a $25.5 million increase (in local aid funding) shows how tight it is,” Widmer said. “I’d say fiscal ’15 should be the final year we draw from the rainy day fund.”

The Senate is expected to release its budget proposal next month. Both chambers will then work out differences between their proposals and vote on a single budget, which will head to Patrick’s desk.

Gerry Tuoti is the Regional Newsbank Editor for GateHouse Media New England. Email him at gtuoti@tauntongazette.com or call him at 508-967-3137.